During the first in a series of roundtable discussions on responding and recovering better from the global crisis, this one with women economists, he painted a grim picture of acute suffering, saying that extreme poverty and hunger are set to increase drastically. Many healthcare systems are already at breaking point; and a whole generation of children is missing out on education.
Building back better
Against the backdrop of his call for an overall rescue package by governments, equivalent to at least ten per cent of the global economy, Mr. Guterres said he had met with the Prime Ministers of Jamaica and Canada, who lead the Group of Friends of Financing Sustainable Development, to identify ways to finance the recovery and build back better.
Some 50 heads of State and Government have stepped forward to lead a joint effort – with UN agencies, governments, financial institutions, private sector creditors and other – to address key challenges, ranging from global liquidity and debt vulnerability, to eroding illicit financial flows.
He pointed out that developing countries face vastly increased demands for public spending “exactly at the same time” as tax and export revenues, inward investments and remittances, are plummeting.
“As we craft a comprehensive global response, action on finance must be central”, underscored the UN chief. “If countries lack the financial means to fight the pandemic and invest in recovery, we face a health catastrophe and a painfully slow global recovery”.
The world is on the cusp of a widespread debt crisis, the top UN official said, noting that many countries face “an impossible choice” between servicing their debt or protecting their most vulnerable communities and fighting the pandemic.
Explaining that “debt defaults can have devastating social consequences”, he made clear that many countries lack financial market access to enable them to service their debt.
“Beyond the fiscal shock, the COVID-19 crisis has impacted all the components of external finance: direct investment, exports and remittances”, he continued, adding that as developed countries themselves deal with the crisis, official development assistance is also under pressure.
For recovery and to realize the SDGs, “durable solutions on debt” must be considered “to create fiscal space for investments”, stressed Mr. Guterres.
“Uncertainty and a further retreat to inward-looking policies and protectionism could turn today’s sharp decline into a prolonged period of weak external financing”, the UN chief cautioned.
Moreover, as the pandemic disrupts supply chains and trade, he flagged the danger that some manufacturing will move back to developed countries, further reducing developing countries’ resources, and challenging their integration into the global economy.
“These questions need bold and creative answers” Mr. Guterres upheld.
Rebirthing the Global Economy Women Economists Roundtable: We need a partnership with financial markets to change the balance to achieve the SDGs.
Investments need to land on the right side of history. #Fin4Dev
Women #RiseForAll pic.twitter.com/1L0CAQ9u6E
— Amina J Mohammed (@AminaJMohammed) July 1, 2020
According to the UN chief, “we need the insights and perspectives of all”, including “prominent and innovative” women economists, to create “inclusive, resilient and gender-equal societies” to address the climate crisis and other global challenges.
“We need concrete, radical and implementable solutions”, spelled out the Secretary-General, voicing hope that the series of roundtables will stimulate new ideas and “a totally different debate in relation to the classic ones we have witnessed in the recent past”.
In imagining “a new global economy in which finance becomes a means and not an end”, Deputy Secretary-General Amina Mohammed noted that external finance “needs to change course”.
“We need a partnership with financial markets to change the balance and achieve the SDGs”, she said, adding that investments cannot be only about profit at any cost but must “land on the right side of history”.
The transformation must “break the inequality and environmental degradation enchantment that darken our future”, she continued, pushing for a new global economy “based on sustainable consumption and production, on sustainable infrastructure that gives access to all to the opportunities of the future”.
“And we need to do it for the next generations”, concluded the deputy UN chief. “Rebirthing the global economy is an opportunity to empower them to confront the current and looming challenges”.
Austrian economy might not shrink as much as previously forecast: ONB – TheChronicleHerald.ca
BERLIN (Reuters) – Austria’s economy could shrink by around 6% this year, the Austrian National Bank on Friday, striking a more optimistic tone than in early June, when it had forecast a 7.2% decline.
It said weekly real-time gross domestic product (GDP) data showed the Alpine republic’s economy was recovering faster than expected.
“As long as we avoid a strong second wave of COVID-19 infections, the collapse in Austria’s economy in 2020 could be less severe than had been expected in our forecast in early June,” the ONB said.
It warned that the risks related to the forecast for a 6% contraction remained clearly to the downside though.
(Reporting by Michelle Martin; editing by Thomas Seythal)
Japan's spending slump eases as economy reopens, COVID-19 clouds outlook – TheChronicleHerald.ca
By Leika Kihara
TOKYO (Reuters) – Japan’s household spending fell at a much slower pace in June than in the previous month as the economy re-opened from lockdown measures to contain the coronavirus pandemic, offering some hope of a moderate recovery later this year.
But the recovery was driven largely by the government’s blanket cash payouts to households, which were spent on big ticket items like television sets, personal computers and sofas.
That cast some doubt on the sustainability of the rebound, particuarly as rising COVID-19 infections nationwide have forced the government to request citizens hold off on unnecessary travel and work from home as much as possible.
“The rebound in consumption was stronger than expected, so we may see the economy pick up faster than initially thought,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.
“But renewed rises in infection numbers are worrying. It’s too early to be optimistic on the outlook.”
Household spending in June declined 1.2% from a year earlier, government data showed on Friday, less than a median market forecast for a 7.5% drop.
It followed a record 16.2% drop in May, when consumers were still heeding authorities’ calls to stay home to contain the pandemic. Those emergency steps were lifted in late May.
Compared with the previous month, household spending jumped 13.0% in June to mark the biggest increase on record as the government’s cash payouts offset a steady drop in regular wages.
The payouts helped push spending on air conditioners up by nearly 30% in June, television sets by 83%, and tables and sofas by two-fold, the data showed.
But inflation-adjusted real wages fell for the fourth consecutive month in June, clouding the outlook for an economy bracing for a prolonged impact from the pandemic.
The fallout from the pandemic has pushed Japan deeper into recession, hitting an economy already reeling from the damage to consumption and exports from last year’s tax hike and slumping overseas demand.
(Reporting by Leika Kihara; additional reporting by Daniel Leussink; editing by Jane Wardell)
Lebanon's economy was already in crisis. Then the blast hit Beirut – CNN
Economy in free fall
Canadian woman urges Ottawa to return husband from Bolivia – CBC.ca
Jets’ Scheifele suffered Achilles injury, Laine a hand injury vs. Flames – Sportsnet.ca
Samsung activates ECG on Galaxy Watch Active2 in Korea – GSMArena.com news – GSMArena.com
Silver investment demand jumped 12% in 2019 – report – MINING.com
Iran anticipates renewed protests amid social media shutdown
Richmond BBQ spot speaks out about coronavirus rumours Vancouver Is Awesome
- Sports9 hours ago
Brock Boeser pays tribute to late friend with goal in Canucks’ win – Sportsnet.ca
- Media22 hours ago
BCE profit drops 64% as media, wireless suffer in pandemic – BNN
- Tech16 hours ago
Android 11 Beta 3 is here, removing the location requirement for COVID-19 contact tracing apps – XDA Developers
- Sports8 hours ago
Tiger Woods, Brooks Koepka shine in opening PGA round
- Tech20 hours ago
5 Galaxy Note 20 Ultra features Apple needs to steal for the iPhone 12 – CNET
- Sports7 hours ago
Scoring chances are no fluke
- Sports15 hours ago
Oilers’ Tyler Ennis out indefinitely after leaving Game 3 injured – Sportsnet.ca
- Media7 hours ago
Unifor to begin negotiations August 12th with Detroit Three automakers